ESOP Services
Consulting
Our expertise is focused on both the technical and business aspects of running your ESOP.
Technical
We understand the ERISA issues surrounding your plan including design, compliance and quantification (our core business). Our repurchase studies help clients understand the pension like promise of the ESOP.
Business
As former CEOs and CFOs of ESOPs we consult on financial analysis, mergers, acquisitions and sales. Our viewpoint may be consulting, but we are also operators.
ESOP Creation
We have created ESOPs from scratch and have the experience to guide you through the process.
Quarterback the creation
To ensure that the ESOP is successful, we discuss the reason for the ESOP. We will have an opinion of advantages and disadvantages and whether it makes sense. Our role is to assist in every step of the process.
Select vendors
Beginning an ESOP requires a specialized process that will culminate in hiring different advisors. We guide you through this stage.
Execution
After consideration of the process, the final step is to execute the plan. We help you make the right decisions to ensure the ESOP is viable for the long term.
ESOP Repurchase Liability
We are experts in the repurchase liability of ESOPs.
Actuarial Assumptions
Your repurchase study is only as good as the assumptions. As actuaries, our experience is to tailor the assumptions to your company as that is typical for pension plans.
Stochastic Modeling
This form of modeling is not seen within the ESOP world. The sophistication of the model allows employers to understand the range of possibilities versus a static number.
Scoring
The models may be intimidating, but we create an easy to understand scoring system which translates the results into everyday conversation.
Financial Modeling
We develop custom models integrating your corporate financials with the ESOP to stress test both areas.
Demographic
As actuaries and accountants, we believe clients need to understand the impact of the assumptions not being realized. We model accelerated retirement, terminations and increased liquidations of the plan.
Financial
Stochastically, we model over 1000 scenarios of different asset returns in order to show clients the ramifications of volatile returns. This allows for better contingency planning.
ESOP Funding Policy
Developing a funding policy is critical to the long term success of the ESOP.
Methodology
ESOP funding policy decisions are established during creation of the ESOP, however, this policy can be modified and could have significant impact on the organization. We can ensure you have the information of the impact of each plan decision.
Goal
We work with management, trustees and boards of directors to understand the goals and long-term impact of policy decisions to provide a resource to promote sustainability.